Why GM stocks are tanking?

[Msmith]

When GM folded last year and wiped out part of my retirement nest eggs/children college funds, I still hoped that given a fresh start with no baggage I might actually be a fool and reinvest its stock again. The IPO was $34 and the price did climb to about $38, but now it is $26! No, I didn't put any money in it but I just scratch my head while the stock is so bad? It does have a consecutive monthly profit and it sales in July was over 7% while the nationwide auto sale was in 1%.